Re: Fear & Control

Well, my income is crappy, but I also had to start in my forties with building a credit history. My bank gave me my first credit card (a platinum) after I had had their debit card for a while.

For me, the main reason to get a credit card was not an auto loan, but to be able to rent a car when I am on business trips. Most companies don't accept anything else than a credit card for this purpose.

Re: Fear & Control

Well, my income is crappy, but I also had to start in my forties with building a credit history. My bank gave me my first credit card (a platinum) after I had had their debit card for a while.

For me, the main reason to get a credit card was not an auto loan, but to be able to rent a car when I am on business trips. Most companies don't accept anything else than a credit card for this purpose.

This is not as true as it once was. It is easier and potentially less inconveniencing to rent a card with a CC, but many of the majors are now accepting debit cards.

Re: Fear & Control

Pappy -

Here's the problem - when you present yourself to a lender they look at your CBR and see, well... nothing. Now if you are young you are not reasonably expected to have a credit history because you can't. Same thing applies when you are an immigrant. When you are, for lack of a better term, "older", you can be reasonably expected to have a credit history and not having one raises eyebrows. What would be the difference between your credit report, Pappy, and the CBR of a person who had 15 TL's and let them all charge off, waited 8 years and showed up asking for credit. Or, for that matter, had a BK that had aged off. The answer is: nothing! (This is true of a consumer report - the same statement would not apply to an insurance or employment report.) This is not age discrimination, it is credit discrimination and, after all, lenders are in the credit discrimination business. Consider yourself lucky you don't have a bunch of bad stuff to repair. That can take up to 7.5 years to disappear. All you have to do is get about two years under your belt and you'll be real.

I your particular case I would recommend you establish a good relationship with the credit union of you choice. Deposit some money there. Explain yourself. Refinance that auto loan after six months. Go with a CU that can offer you a decent CC. There a plenty such CU's around. Better to get your credit card from them than a sub-prime card that will not grow with you. That or go to BofA and app for a card. If they don't like you for that they most likely will offer you a secured card. If the do, take it. You have to start somewhere!

Re: Fear & Control

jmbfl wrote:

Pappy -

Here's the problem - when you present yourself to a lender they look at your CBR and see, well... nothing. Now if you are young you are not reasonably expected to have a credit history because you can't. Same thing applies when you are an immigrant. When you are, for lack of a better term, "older", you can be reasonably expected to have a credit history and not having one raises eyebrows. What would be the difference between your credit report, Pappy, and the CBR of a person who had 15 TL's and let them all charge off, waited 8 years and showed up asking for credit. Or, for that matter, had a BK that had aged off. The answer is: nothing! (This is true of a consumer report - the same statement would not apply to an insurance or employment report.) This is not age descrimination, it is credit descrimination and, after all, lenders are in the credit descrimination business. Consider yourself lucky you don't have a bunch of bad stuff to repair. That can take up to 7.5 years to disappear. All you have to do is get about two years under your belt and you'll be real.

I your particular case I would recommend you establish a good relationship with the credit union of you choice. Deposit some money there. Explain yourself. Refinance that auto loan after six months. Go with a CU that can offer you a decent CC. There a plenty such CU's around. Better to get your credit card from them than a sub-prime card that will not grow with you. That or go to BofA and app for a card. If they don't like you for that they most likely will offer you a secured card. If the do, take it. You have to start somewhere!

Re: Fear & Control

It is a little dated. Things may be even better now. Note: I only said it is increasingly possible and not necessarily desireable.

Thanks for the link. Note the language saying "most" or "some" rental locations will accept debit cards. There's a good chance that none of the locations at your destination will do so. The article also says that they need to be able to "put a hold" on your debit card. I thought this is principally not possible? It's more like that they will book that money from your account, and if you return the car, they will book it back.

Re: Fear & Control

It is a little dated. Things may be even better now. Note: I only said it is increasingly possible and not necessarily desireable.

Thanks for the link. Note the language saying "most" or "some" rental locations will accept debit cards. There's a good chance that none of the locations at your destination will do so. The article also says that they need to be able to "put a hold" on your debit card. I thought this is principally not possible? It's more like that they will book that money from your account, and if you return the car, they will book it back.

I live in transient heaven - South Florida. I know of at least five places I could go tomorrow and rent a car without a credit card.I didn't say I would - just that it is possible.

You can authorize a transaction on a debit card just the same as you can a credit card. They would not be charging you and then crediting you back. Either way you would be tying up a bunch of money for up to fifteen days. If you do it with a credit card it is part of your CL being tied up. If you do it on a debit card it is your money being tied up.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.